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Reports Russia

Russian stock market daily morning report (May 07, 2014, Wednesday)

May 7, 2014, Wednesday, 10:59 GMT | 06:59 EST | 15:29 IST | 17:59 SGT
Contributed by Veles Capital

America closed showing major indices looking down under 1%, shares within nearly all sectors were for sale. The most reduction indicated the stocks of internet companies and the companies involved in the financial sector. We assume that the selloff at the US exchange grounds will have the key value for the Russian market open on Wednesday. We assume that the most probable range of the MICEX motion today forms 1,315-1,300 points.

Main events

Bashneft finalized reorganization via adding Bashneft-Invest, CJSC.

Resulting from reorganization, shares worth 20.6% of the authorized capital stock have been cancelled.

Consumption of power energy for April 2014 reduced 1.5%.

For four months sum generation of power energy in Russia dropped 2% at the back of deceleration of industrial growth rates and as follows, reduction of consumption. Such a significant reduction might lead to revision of our targets downwards. However, we stick to a more optimistic outlook then Ministry of Energy does: 1% down vs consumption at the previous year’s level.